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Equity method investments | 9 Months Ended
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Sep. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investments | Note 5. Equity method investments Berkshire and its subsidiaries hold investments that are accounted for pursuant to the equity method. The most significant of these are our investments in the common stock of The Kraft Heinz Company (“Kraft Heinz”) and Occidental. As of September 30, 2025, we owned 27.5% of the outstanding Kraft Heinz common stock and 26.9% of the outstanding Occidental common stock, which excludes the potential effect of the exercise of Occidental’s outstanding common stock warrants. Kraft Heinz manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. Occidental is an international energy company, whose activities include oil and natural gas exploration, development and production, and chemicals manufacturing businesses. We also own a 50% interest in Berkadia Commercial Mortgage LLC (“Berkadia”). Jefferies Financial Group Inc. (“Jefferies”) owns the other 50% interest. Berkadia engages in mortgage banking, investment sales and servicing commercial/multi-family real estate loans. Berkadia’s commercial paper borrowing capacity (limited to $1.5 billion) is supported by a surety policy issued by a Berkshire insurance subsidiary. Jefferies is obligated to indemnify us for one-half of any losses incurred under the policy. Our investments in Kraft Heinz, Occidental and Berkadia are summarized as follows (in millions). Kraft Heinz and Occidental common stocks are publicly-traded and the fair values are based on quoted market prices as of our balance sheet dates.
| Carrying Value |  |  | Fair Value |
| September 30, 2025 |  |  | December 31, 2024 |  |  | September 30, 2025 |  |  | December 31, 2024 |
Kraft Heinz | $ | 8,605 |  |  | $ | 13,395 |  |  | $ | 8,480 |  |  | $ | 9,994 |
Occidental |  | 16,468 |  |  |  | 17,287 |  |  |  | 12,518 |  |  |  | 13,053 |
Berkadia |  | 451 |  |  |  | 452 |  |  |  |  |  |  |
| $ | 25,524 |  |  | $ | 31,134 |  |  |  |  |  |  |
Notes to Consolidated Financial Statements Note 5. Equity method investments Our equity in earnings and distributions received from equity method investments are as follows (in millions).
| Equity in Earnings |  |  | Distributions Received |
| Third Quarter |  |  | First Nine Months |  |  | Third Quarter |  |  | First Nine Months |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Kraft Heinz* | $ | 225 |  |  | $ | (78 | ) |  | $ | (4,571 | ) |  | $ | 164 |  |  | $ | 131 |  |  | $ | 131 |  |  | $ | 391 |  |  | $ | 391 |
Occidental* |  | 77 |  |  |  | 277 |  |  |  | 211 |  |  |  | 740 |  |  |  | 63 |  |  |  | 55 |  |  |  | 183 |  |  |  | 151 |
Berkadia |  | 28 |  |  |  | 23 |  |  |  | 71 |  |  |  | 63 |  |  |  | 34 |  |  |  | 19 |  |  |  | 72 |  |  |  | 37 |
| $ | 330 |  |  | $ | 222 |  |  | $ | (4,289 | ) |  | $ | 967 |  |  | $ | 228 |  |  | $ | 205 |  |  | $ | 646 |  |  | $ | 579 |
—————— * We report our equity in Occidental’s earnings on a one-quarter lag and, as indicated below, in the second quarter of 2025, we began reporting our equity in Kraft Heinz’s earnings on a one-quarter lag. We recorded a pre-tax impairment loss of approximately $5.0 billion in the second quarter of 2025 as a component of our equity in the earnings of Kraft Heinz, which reduced the carrying value of our investment in Kraft Heinz to fair value at that time. As such, Berkshire’s share of Kraft Heinz shareholders’ equity exceeded Berkshire’s equity method carrying value by approximately $5.0 billion at that time. This basis difference was attributed to Kraft Heinz’s indefinite-lived intangible assets and goodwill. In evaluating our investment in Kraft Heinz for other-than-temporary impairment in the second quarter of 2025, we considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, and the operating results and financial condition of the company. Furthermore, Berkshire’s representatives on the Kraft Heinz Board of Directors stepped down on May 19, 2025. Since then, the timing and extent of financial information Berkshire receives regarding Kraft Heinz is limited to the information that Kraft Heinz makes available to the public. In May 2025, Kraft Heinz announced that it was evaluating potential strategic transactions to enhance shareholder value. On September 2, 2025, Kraft Heinz announced a plan to split Kraft Heinz into two independent, publicly traded companies through a tax-free spin-off. Since the timing and extent of financial information we receive from Kraft Heinz became limited to the information Kraft Heinz makes publicly available, we concluded our receipt of such information was no longer sufficiently timely for concurrent inclusion in our Consolidated Financial Statements. Thus, we began recognizing the equity method effects attributable to our investment in Kraft Heinz on a one-quarter lag beginning with our second quarter of 2025. Our equity in earnings from Kraft Heinz in the first six months of 2025 included the $5.0 billion impairment loss we recorded in our second quarter, as well as our share of earnings Kraft Heinz reported in its first quarter of 2025. Our equity in earnings from Kraft Heinz for the third quarter of 2025 included our proportionate share of Kraft Heinz’s net earnings in the second quarter before our share ($2.4 billion) of the after-tax indefinite-lived intangible asset and goodwill impairment losses recognized by Kraft Heinz in its second quarter of 2025 (approximately $8.6 billion), which we applied to the basis difference that resulted from the impairment loss we recorded in our second quarter. Summarized financial information of Kraft Heinz follows (in millions).
| June 28, 2025 |  |  | December 28, 2024 |
Assets | $ | 81,581 |  |  | $ | 88,287 |
Liabilities |  | 40,089 |  |  |  | 38,962 |
| Quarter Ended June 28, 2025 |  |  | Six Months Ended June 28, 2025 |  |  | Quarter Ended September 28, 2024 |  |  | Nine Months Ended September 28, 2024 |
Net sales | $ | 6,352 |  |  | $ | 12,351 |  |  | $ | 6,383 |  |  | $ | 19,270 |
Net earnings (loss) attributable to common shareholders |  | (7,824 | ) |  |  | (7,112 | ) |  |  | (290 | ) |  |  | 613 |
Notes to Consolidated Financial Statements Note 5. Equity method investments As of September 30, 2025, the excess of the carrying value over the fair value of our investment in Occidental common stock was $3.95 billion (or 24% of our carrying value). In evaluating the investment in Occidental for other-than-temporary impairment as of September 30, 2025, we considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, and the operating results and financial condition of the company, as well as our current expectations and other factors. Based on the prevailing facts and circumstances, we concluded the recognition of an impairment charge in earnings for Occidental was not required as of September 30, 2025. However, our current expectations and intentions concerning this investment may change in the future, which may result in the recognition of an impairment loss at that time. Our carrying value in Occidental common stock as of September 30, 2025 exceeded our share of Occidental common shareholders’ equity as of June 30, 2025 by approximately $9.1 billion. Summarized financial information of Occidental follows (in millions).
| June 30, 2025 |  |  | September 30, 2024 |
Assets | $ | 84,360 |  |  | $ | 85,803 |
Liabilities |  | 48,184 |  |  |  | 50,869 |
| Quarter Ended June 30, |  |  | Nine Months Ended June 30, |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Total revenues and other income | $ | 6,456 |  |  | $ | 6,879 |  |  | $ | 20,136 |  |  | $ | 20,418 |
Net earnings attributable to common shareholders |  | 288 |  |  |  | 992 |  |  |  | 757 |  |  |  | 2,739 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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